Prestige Pricing

“Price Drives the Sale!” This is the idea that drives business after business into crowded, uncomfortable and unprofitable markets day after day. Prices do not drive sales. It never has and it never will.

Value – or the perceived value – drives sales.

Did You Know?

Excedrin and Tylenol continue to outsell generic brand pain relievers, even when the generic brands are 75% lower.
I’m sure that comes as no surprise to most people, because when you have a headache you don’t want to guess on the cure.

Low Prices Hurt Sales

I read a story the other day about a guy who was asked by a friend about eMachines. He told her it was a piece of junk but after he thought about it he realized that neither he nor any of his friends had ever bought an eMachines computer.

He decided to do a little research and went online and started reading reviews about eMachines. What he found was that most people had decided they were crap, because of the prices and that very few people had actually used the machines.

In the consumers mind low prices are a reflection on the quality.

Building Quality Based on Price

As consumers we don’t have time to research every product we come across and when buying soap, milk, printer paper, light bulbs, bottled water, gasoline, etc. we often times use price to judge what is and is not the best.

And let’s not forget about companies like Texaco, Rolex and Lexus whose whole marketing model is based on prestige pricing.

What Is Your Product Really Worth?

When we started our web design business we tried to compete on price but we found that there was always someone cheaper. And we tried to deliver the moon and found that it wasn’t enough.

However, we learned how to build some of the best websites online. Not just any websites but websites that would convert traffic. I’ve got websites that break $200,000.00 month after month.

We had to learn the hard way that it’s not about the price, it about quality and your price has to reflect that or you’ll lose money. If I’m losing money on a site it becomes very difficult to spend the time and energy needed to give the client the site they deserve.

We learned the hard way that you have to charge what your service is worth and then over deliver. If I cut prices it causes me to have to cut services and I refuse to do that to myself or my clients.

We are not the cheapest but we are the best.